Research On The Impact Of The Minimum Wage System On The Upgrading Of Industrial Structure

In the context of the "new normal" economy and our aging population,the current pace of growth is not like usual,adjusting and optimizing the industrial structures is quiet an important target of the 13th Five Year Plan of China.Besides that,the minimum wage system has been disputed from its start,so it has attracted many researchers.In recent years,the frequent adjustment and significant increasement of the minimum wage have a great impact on the labor-intensive industries of China,its impact on the industrial structure is also worth studying.This paper mainly studies the impact of the minimum wage system on the upgrading of industrial structure.By analysing the present condition of the minimum wage and industrial structure in China,this artical explains the raising of minimum wage standards will have positive effects on the upgrading of industrial structure through its income effect and substitution effect,the raising of minimum wage standards will also have negative effects on the upgrading of industrial structure through its scale effect,transfer and exit effect.Based on the mechanism analysis,the author contrust a panel data model of multiple-linear regression,collecting the monthly minimum wage and other relevant original data of 31 regions in China from 2004 to 2014,to have an empirical study.The coefficient of industrial structure is as the explained variable,the minimum wage standards as the mainly explaining variable,and the consumption,R&D,fixed-asset investment,foreign investment,foreign trade dependence,urbanization are introduced as the control variables.The empirical result indicates that in China the frequent increase of minimum wage has a negative effects on the upgrading of industrial structure.In the east,the negative influence is more prominent,while in the central region the influence is positive,in the west,opposite results appeared by using different minimum wage standards.The implementation of the minimum wage system is quiet necessary in China.In order to expand the positive effects of the minimum wage and restrain its negative effects,smoothly realized the upgrading of industrial structure under the "new normal" economic situation in Chia,the author suggested:Optimizing the setting process of minimum wage standard;Slowing down the frequent adjustment and high increasement of the minimum wage rate standard;Strengthen the responsibility of government;The union leading the wage consultation system;Variable industry development path should be taken in different areas;Promoting the industrial structural adjustment among industries and accelerating the development of the tertiary industry.